—Contributed by Sarath Srinivasan

Often people ask me, how is what we do different from what consultants do. Although I know the answer to that question, it is often difficult to put into words. But when I use the word Venture Catalyst, it just makes sense. A Catalyst is substance which is not consumed during a chemical reaction but increases the rate of the reaction. Catalysts generally change in the course of a reaction but are regenerated. We are Catalysts and each of our engagements is a Venture – A journey on a growth path.

Without a catalyst a reaction will happen, but at a very slow imperceptible rate. For a company change is inevitable and unfortunately change often happens out of necessity and crisis rather than in a planned and proactive manner. 

People within an organisation intuitively know the inherent problems. Often, they even know what kind of changes and initiatives are required for the organisation to improve and grow. Typically, this knowledge does not lead to improvement. The ingredients for change are there but the change does not happen. The knowledge is stuck in a quagmire created by the lack of focus on improving the company. Each individual tries to protect his own interests and finds no reason to spend his time in trying to improve the organisation. Very often corporations fail to create the right environment for the individual to take an interest its growth. It does not encourage it. The fear is that the "altruistic" nature of the task of improving a firm will be interpreted as inefficiency. The fear is that the benefits of the effort will not accrue to the individual. 

For example let us consider a small firm of about 50 people. The firm has been in existence for 4-5 years and has seen rapid growth driven by a core group of enterprising people. But during the last few years the company has suffered due to the haphazard and individualistic nature of the same people who were responsible for the growth of the company. They do not have the right processes to deal with bigger operations. Despite realising this, individuals within the company do not want to conform to a singe process since it would mean a lesser degree of freedom in their day to day work. 

The role of the catalyst is to make the change happen – faster. The reaction involves taking the individual's knowledge of the firm's inherent problems, the intricate working knowledge of the way the company operates and turn it into solutions and opportunities. This strengthens the foundation and removes the barriers to growth. The catalyst turns the organisational strengths into gold – The catalyst is an alchemist.

Organisational change is successful only if it is effected by people within the organisation. Although it would be the organisation's own personnel effecting and driving the change, the catalyst ensures that the reaction happens. As catalysts, a refreshing attitude and a commitment to the growth of a company has its impact. At the end of a project the catalysts are refreshed – ready to catalyse the growth of another company.

Milagrow as Venture Catalysts:

Where an organisation sees problems, we see opportunities for improvement. In our roles as Catalysts in a Scale Up or Turnaround process for example, we keep the organisation focussed on identified problems so that solutions are developed. We help the personnel in a firm put on their organisational hats. This works because we begin by building a thorough understanding of a firm's strengths and weaknesses. We remain focussed on capitalising on the strengths and countering the weaknesses. We are not weighed down by the past baggage that people within the organisation carry. Although we are embedded as team members within the organisation, working on different projects, our point of view remains neutral and objective.

An Analogy:

A good example of a catalyst is in the disproportionation of hydrogen peroxide to give water and oxygen:

    2 H2O2 –> 2 H2O + O2 

This reaction is slow (hence one can buy solutions of hydrogen peroxide). Upon the addition of manganese dioxide to hydrogen peroxide, the reaction occurs rapidly as signalled by effervescence of oxygen. In demonstrations, the evolved oxygen is detectable by its effect on a glowing splint. The manganese dioxide may be recovered and re-used indefinitely, thus it is a catalyst — it is not consumed by the reaction.
Source: From Wikipedia.

Taking this analogy further, as catalysts we help generate the water and oxygen in a company. The water and oxygen help companies grow. In a scale up process we help the company gear itself up so that the effort required to manage their day to day processes diminishes. From people dependent the organisation becomes process dependent. The oxygen and water becomes easily available and after that the organisation has room to breathe and focus on the future and growth of the company 

As Venture Catalysts, we venture where no one dares venture. We Catalyse change in companies. In companies where the reaction to the threats and opportunities at hand were slow, we speed up the reaction. A Venture is an investment. Venture capitalists invest money. We invest time and belief and reap rewards.